Answer to Question #170459 in Microeconomics for isaac mensah

Question

(B) Use one of the following answers to answer the questions below and explain why: (i) a decrease in demand (ii) a decrease in quantity demanded (iii) an increase in demand (iv) an increase in quantity demanded a. An increase in Pf b. A decrease in Pb c. An increase in Y (C) From the equation, calculate what would happen to demand (with ceteris paribus assumption in mind) for fish if i) the price of fish went up by GHc3 per tonne in 2021 Answer: ii) the price of beef went up by Ghc3 per tonnes in 2021 Answer: iii) the real personal disposable income per head went up by GHc100 in 2021 Answer: (D) Explain whether i) Fish and beef are substitutes, complements or unrelated Answer: ii) Fish is inferior good or normal good

Answer 1

(B)

a. An increase in Pf will cause (ii) a decrease in quantity demanded of fish.

b. A decrease in Pb will cause (i) a decrease in demand for fish.

c. An increase in Y will cause (iii) an increase in demand for fish.

(C) If:

i) the price of fish went up by GHc3 per tonne in 2021, then the quantity of fish demanded will decrease;

ii) the price of beef went up by Ghc3 per tonnes in 2021, then the quantity of fish demanded will increase;

iii) the real personal disposable income per head went up by GHc100 in 2021, then the quantity of fish demanded will increase.

(D)

i) Fish and beef are substitutes.

ii) Fish is a normal good.